Lagos-Calabar rail: FG signs “new” agreement with CCECC, saves $800 million
Work will commence soon on the much publicised Lagos to Calabar rail project, if the agreement signed by both the Federal Government and the China Civil Engineering Construction Company (CCECC) is anything to go by.
Transportation Minister, Rt. Hon. Chibuike Rotimi Amaechi, signed the contract with CCECC on behalf of the Federal Government on Friday.
He said the contract was an addendum to the Lagos-Calabar Coastal Railway project which was initially awarded by the former President Goodluck Jonathan’s Administration to CCECC at a contract sum of $11.917 billion.
The Buhari Administration has however renegotiated the contract with the Management of CCECC and agreed at a contract sum of $11.117 billion thereby saving a whooping sum of $800million.
“What we have done today is signing same contract but different contract sum to make it legal”, Amaechi said.
The Minister further said part of the contract agreement with CCECC is to expedite action and conclude arrangement with the China-Exim Bank to facilitate the commencement of work on the Railway project noting that his desire and expectation is the completion of the project in two years.
Amaechi also expressed confidence that the project would not be hindered, in any way, by funding.
“President Muhammadu Buhari has assured me that he is committed to the development of the Railway Sector in Nigeria and would not leave any ‘stone unturned’ to achieving that dream”, he said.
Explaining further, Amaechi said his Ministry’s determination is to conclude the 1st and 2nd segments of the projects which run through Calabar-Uyo-Aba-Port Harcourt-Yenogua-Otuoke-Ughelli-Warri-Sapele-Benin-Ore-Ijebu-Ode-Lagos with a target of covering all the Seaports along those Routes in good time.
Speaking after the signing of the Contract agreement on behalf of CCECC, President of the construction giant, Mr. Cao Baogang expressed appreciation to the Federal Government of Nigeria and promised that the Company would not let the nation down and delivered on target..
